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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 12:46

Unemployment in Latvia will drop to 6.1% by 2020

BC, Riga, 20.07.2015.Print version
The situation on the labor market will continue to steadily improve in the coming years in Latvia, and by 2020 the employment rate could be growing by 0.2% to 0.7% annually, while the unemployment rate could reduce to 6.1%, according to the Economy Ministry's medium- and long-term forecasts for the labor market, cites LETA.

According to the Economy Ministry's forecasts, the demand for qualified experts in information and communications technologies and engineering will be increasing, while the demand for specialists with education in social sciences will reduce. As a result, there will be a shortage of ICT and engineering professionals, while part of those with a degree in social sciences will have to work in another profession.

 

The Economy Ministry also notes demographic challenges that Latvia will be facing. According to the Economy Ministry's estimates, by 2020 Latvia's population will reduce by 70,000 residents. Furthermore, the number of economically active residents will be reducing faster than the total population, therefore labor shortage may become one of the main obstacles to growth.

 

Another urgent problem is the high youth unemployment. Almost 30% of high school graduates do not pursue university education, and there is also a high proportion of economically active residents with primary education.

 

The Economy Ministry believes that these problems require complex solutions. For instance, it will be hard to increase the number of students of hard sciences, and any changes in higher education, secondary education, vocational and primary education will bear fruit only in the long term.

 

Changing the education system will have little effect in the medium term, therefore efficient education system for adults will be far more important for improving the professional capacity of residents and reducing disproportions on the labor market. Improvements in continuous education are equally important for unemployed and employed residents, regardless of their education and professional experience, notes the Economy Ministry.

 

The ongoing reforms to the education system have to continue, with the emphasis on hard sciences in primary and secondary education, vocational education and adult education.

Furthermore, the impact of demographic trends on the labor market has to be impeded by fostering birthrate and reducing mortality rate, encouraging Latvians residing abroad to return, creating selective labor immigration mechanisms in the long term, and helping residents become more economically active.






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